LLS4: Sustainability KPIs
Maximum Score
3 points
Prefill
Not eligible
Validation
Other answer is manually validated
Are there instances of sustainability KPIs used as loan covenants in your portfolio?
Assessment Instructions
Intent: What is the purpose of this indicator?
Identify mechanism(s) within loan agreements that are tied to enforcing borrower-controlled sustainability aspects/KPIs. Participants should select the applicable scope and provide examples and/or additional context.
Input: How do I complete this indicator?
Select Yes or No. If Yes, please select applicable checkboxes and complete the open text box.
Note: If 'property type' and/or 'specific region' checkbox(es) are selected - participants must elaborate on which cases covenants are used.
Open text box: Description provided should fully support each checkbox selected, along with the following elements:
Specify any third-party standards that are referenced in covenants;
Elaborate what sustainability-related metrics are utilized in loan covenants.
Other: Answers provided under 'Other' must be outside the options listed in the indicator to be valid. This indicator contains two options to provide an answer:
After selecting Yes, state loan scope where sustainability-related covenants are used.
Under 'specific financing' participants must note for which loan type covenants are used.
Terminology
Loan covenant
Condition included in loan terms that requiring the borrower to fulfil certain conditions or taking certain actions.
New construction
Includes all borrower activities to obtain or change building or land use permissions and financing.
Retrofit/renovation
Includes all borrower activities to modify an existing building’s systems and/ or structure in order to improve building performance or tenant amenities.
Tenant fit-outs
Alterations undertaken by either the tenant or the borrower to design, refurbish or decorate a leased space, making it fit for tenant purpose. Tenant improvement allowances are generally provided by the borrower, to a tenant, at time of lease origination.
Validation: What evidence is required?
No evidence required. Only the 'Other' answer is manually validated.
Other Answer
If 'property type' and/or 'specific region' checkbox(es) are selected, an additional explanation must be provided, which is subject to manual validation.
The answers provided under 'Other' are subject to manual validation.
Scoring
Scoring: How does GRESB score this indicator?
The scoring of this indicator is equal to the sum of the fractions assigned to the selected options and respective sub-options, multiplied by the total score of the indicator.
If 'specific property type' and/or 'specific region' checkbox(es) are selected, an additional explanation must be provided, which is subject to manual validation.
Open text box: The open text box is not scored and is for reporting purposes only.
Other: The 'Other' answer is manually validated and assigned a score which is used as a multiplying factor, as per the table below:
Accepted
1/1
Not Accepted
0
Duplicate
0
Was this helpful?